News Releases

Guidance increased on full-year net sales and full-year adjusted
diluted earnings per share, reflecting strength of base business and
strong performance of OFIRMEV®

Third quarter net sales of $653 million, up 14.6%, and adjusted
diluted earnings per share of $1.20; first nine months’ net sales of
$1.751 billion and adjusted diluted earnings per share of$3.04,
up 41%

DUBLIN--(BUSINESS WIRE)--Aug. 7, 2014--
Mallinckrodt
plc (NYSE: MNK), a leading global specialty pharmaceutical company,
today reported results for the third quarter of fiscal 2014, which ended
June 27, 2014. The company also announced that it updated guidance for
fiscal 2014 reflecting the strong performance of the company’s base
business, and recently acquired OFIRMEV (acetaminophen) injection.

Net sales were $653.1 million for the third quarter of fiscal 2014
compared with $570.0 million reported in the third quarter of fiscal
2013, an increase of 14.6%. Strong net sales were driven by the
inclusion and performance of OFIRMEV, acquired March 2014; continuing
strength in our base specialty controlled substance generics portfolio;
and positive Methylphenidate ER performance heightened by favorable
comparisons over fiscal 2013.

On a non-GAAP(1) basis, adjusted net income for the third
fiscal quarter of 2014 was $71.6 million, compared with $28.4 million a
year ago. Non-GAAP adjusted diluted earnings per share were $1.20, the
strongest results posted by the company since becoming independent.

On a GAAP basis, the company incurred a net loss for the third quarter
of fiscal 2014 of $24.1 million, or $0.41 per diluted share, compared
with a net loss of $27.9 million, or $0.48 per diluted share, in the
year-ago period. The decline in net loss reflects higher net sales
attributable to OFIRMEV and benefits from strategic pricing actions in
certain specialty controlled substance generics products, along with a
$42.4 million decrease in separation costs as compared with the third
quarter of fiscal 2013. These factors were partially offset by a $42.7
million increase in amortization primarily associated with OFIRMEV, and
$16.6 million of transaction costs associated with the pending
acquisition of Questcor Pharmaceuticals, Inc.

“This has been another exceptionally strong quarter in what is shaping
up to be a very promising year for Mallinckrodt,” said Mark Trudeau,
Chief Executive Officer and President, Mallinckrodt. “This performance
is being driven by the strength of our Specialty Pharmaceuticals segment
in both Brands and Specialty Controlled Substance Generics, as well as
streamlined costs from our on-going restructuring initiatives, leading
to meaningful top-line and bottom-line growth. We continue to be pleased
with the performance of our base business and recently added OFIRMEV,
and look forward to closing the acquisition of Questcor in the coming
weeks.”

Gross profit was $284.3 million for the third quarter of fiscal 2014,
compared with $265.8 million in the prior-year period, driven by the
inclusion and performance of OFIRMEV. Gross profit, as a percentage of
net sales, was 43.5% for the quarter, versus 46.6% in the prior-year
period. This result was impacted by a $52.2 million increase in
amortization and inventory fair value expenses, primarily related to the
acquisition of Cadence Pharmaceuticals, Inc.

Selling, general and administrative (SG&A) expenses for the third
quarter of fiscal 2014 were $221.3 million, compared with $166.9 million
in the same period in 2013. SG&A expenses as a percentage of net sales
were 33.9% in the third quarter of fiscal 2014, compared with 29.3% in
the prior year. The increase in SG&A includes the addition of OFIRMEV
selling expenses and $16.6 million in transaction costs primarily
associated with the pending Questcor acquisition, as well as $11.5
million in recent legal settlement costs.

R&D expenses for the third quarter of fiscal 2014 were $42.7 million,
compared with $44.8 million in the prior-year period, reflecting project
timing year over year.

Separation costs for the third quarter of fiscal 2014 were $1.8 million,
compared with $44.2 million in the prior year. Separation costs in the
third quarter of fiscal 2013 reflected the increased costs associated
with the June 28, 2013 separation of the company from its former parent.

Under the previously announced $100 million to $125 million
restructuring program designed to lower cost of goods sold and SG&A,
restructuring charges were $23.8 million for the third quarter of fiscal
2014, compared with $11.3 million in the prior-year period.

The fiscal 2014 third quarter non-GAAP effective tax rate was 23.4%.

Nine-Month Fiscal 2014 Results

In the first nine months of fiscal 2014, net sales were $1.751 billion,
compared with $1.659 billion in the first nine months of the prior year,
representing a 5.5% increase. Net sales of the Specialty Pharmaceuticals
segment increased to $1.048 billion compared with $0.913 billion, up
14.8%.

On a non-GAAP basis, adjusted net income was $179.2 million, compared
with $123.9 million last year. Non-GAAP adjusted diluted earnings per
share were $3.04, compared with $2.15 last year; an increase of 41.4%.
This was attributable to benefits from strategic pricing initiatives,
the inclusion and performance of OFIRMEV and lower tax provision
expense. These factors were partially offset by higher supply chain
costs experienced in the Global Medical Imaging segment and higher
interest expense in fiscal year 2014.

On a GAAP basis, net income for the first nine months of fiscal 2014 was
$33.1 million, compared with $25.3 million for the same period in 2013 -
an increase of 30.8%. GAAP diluted earnings per share were $0.56,
compared with $0.44 last year.

BUSINESS SEGMENT RESULTS

Specialty Pharmaceuticals Segment

Net sales in the Specialty Pharmaceuticals segment for the third quarter
of fiscal 2014 were $414.3 million compared with $308.6 million in the
prior-year period. Net sales in Brands were $84.9 million, compared with
$54.9 million last year, led by OFIRMEV net sales and partially offset
by decreased sales of EXALGO® (hydromorphone HCl)
Extended-Release Tablets, CII, due to the launch of the company’s EXALGO
authorized generic and a third-party generic entrant into the market.
Net sales in Specialty Generics and Active Pharmaceutical Ingredients
(API) were $329.4 million, compared with $253.7 million last year driven
by increased profitability on certain Specialty Controlled Substance
Generics products and continued strong Methylphenidate ER sales
performance.

Net sales in the company's Global Medical Imaging segment were $227.1
million, versus $247.9 million in the third quarter of fiscal 2013. For
the fiscal third quarter, operating income in the segment was $11.2
million, compared with $13.5 million last year. Operating margin was
4.9%, compared with 5.4% last year, reflecting lower net sales and
higher inventory costs partially offset by benefits from restructuring
actions.

FISCAL 2014 UPDATED GUIDANCE

Mallinckrodt is providing revised guidance for fiscal 2014, reflecting
improved base performance and the completed acquisition of Cadence. This
information is summarized below in comparison to the previous guidance
issued on May 8, 2014 (excluding foreign currency impact).

Guidance Category

May 2014

August 2014

Adjusted diluted earnings per share

$3.30 to $3.60

$4.00 to $4.30

Total Mallinckrodt net sales(2)

$2.28 billion to $2.38 billion

$2.35 billion to $2.45 billion

Specialty Pharmaceuticals segment net sales

$1.38 billion to $1.43 billion

$1.425 billion to $1.5 billion

Global Medical Imaging segment net sales

$850 million to $900 million

$850 million to $900 million

Methylphenidate ER net sales

At least $160 million

At least $190 million

Non-GAAP effective tax rate

23% to 26%

22% to 25%

Capital expenditures

$130 million to $150 million

$115 million to $135 million

(2)Includes sales to former parent

CONFERENCE CALL AND WEBCAST

Mallinckrodt will hold a conference call for investors on Thursday,
August 7, 2014, beginning at 8:30am/U.S. Eastern Time. This call can be
accessed in three ways:

By telephone: For both “listen-only” participants and those who wish
to take part in the question-and-answer portion of the call, the
telephone dial-in number in the U.S. (844) 867-9755. For participants
outside the U.S., the dial-in number is (901) 300-3301. The access
code for all callers is #74207880.

Through an audio replay: A replay of the call will be available
beginning Thursday afternoon, August 7, 2014, and ending at 12:59pm/
U.S. Eastern Time on August 14, 2014. The dial-in numbers for U.S.
participants are (800) 585-8367 or (855) 859-2056. For participants
outside the U.S., the replay dial-in number is (404) 537-3406. The
replay access code for all callers is #74207880.

Adjusted net income represents net income, prepared in accordance with
accounting principles generally accepted in the U.S. (GAAP), excluding
the after-tax effects related to separation costs; restructuring and
related charges, net; amortization; discontinued operations; and other
items identified by the company. Adjusted diluted earnings per share
represents adjusted net income divided by the number of diluted shares.
The non-GAAP effective tax rate reflects the tax impact of adjustments
between net income and adjusted net income and certain effects
associated with acquisitions.

Operational growth measures the change in net sales between current- and
prior-year periods using a constant currency, the exchange rate in
effect during the applicable prior-year period. This measure is one of
the performance metrics that determines management incentive
compensation.

The company has provided these non-GAAP financial measures because they
are used by management, along with financial measures in accordance with
GAAP, to evaluate the company's operating performance. In addition, the
company believes that they will be used by certain investors to measure
Mallinckrodt's operating results. Management believes that presenting
these non-GAAP measures provides useful information about the company's
performance across reporting periods on a consistent basis by excluding
items that the company does not believe are indicative of its core
operating performance.

These non-GAAP measures should be considered supplemental to and not a
substitute for financial information prepared in accordance with GAAP.
The company's definition of these non-GAAP measures may differ from
similarly titled measures used by others.

Because non-GAAP financial measures exclude the effect of items that
will increase or decrease the company's reported results of operations,
management strongly encourages investors to review the company's
consolidated financial statements and publicly filed reports in their
entirety. A reconciliation of the non-GAAP financial measures to the
most directly comparable GAAP financial measures is included in the
tables accompanying this release.

Cautionary Statements Related to Forward-Looking Statements

Statements in this document that are not strictly historical,
including statements regarding the proposed acquisition, the expected
timetable for completing the transaction, future financial and operating
results, benefits and synergies of the transaction, future opportunities
for the combined businesses and any other statements regarding events or
developments that we believe or anticipate will or may occur in the
future, may be "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995, and involve a number
of risks and uncertainties. There are a number of important factors that
could cause actual events to differ materially from those suggested or
indicated by such forward-looking statements and you should not place
undue reliance on any such forward-looking statements. These factors
include risks and uncertainties related to, among other things: general
economic conditions and conditions affecting the industries in which
Mallinckrodt and Questcor operate; the commercial success of
Mallinckrodt's and Questcor's products, including H.P. Acthar®
Gel; Mallinckrodt's and Questcor's ability to protect intellectual
property rights; the parties' ability to satisfy the merger agreement
conditions and consummate the merger on the anticipated timeline or at
all; the availability of financing, including the financing contemplated
by the debt commitment letter, on anticipated terms or at all;
Mallinckrodt's ability to successfully integrate Questcor's operations
and employees with Mallinckrodt's existing business; the ability to
realize anticipated growth, synergies and cost savings; Questcor's
performance and maintenance of important business relationships; the
lack of patent protection for Acthar, and the possible United States
Food and Drug Administration ("FDA") approval and market introduction of
additional competitive products; Questcor's reliance on Acthar for
substantially all of its net sales and profits; Questcor's ability to
continue to generate revenue from sales of Acthar to treat on-label
indications associated with nephrotic syndrome, multiple sclerosis,
infantile spasms or rheumatology-related conditions, and Questcor's
ability to develop other therapeutic uses for Acthar; volatility in
Questcor's Acthar shipments, estimated channel inventory, and end-user
demand; an increase in the proportion of Questcor's Acthar unit sales
comprised of Medicaid-eligible patients and government entities;
Questcor's research and development risks, including risks associated
with Questcor's work in the areas of nephrotic syndrome and lupus, and
Questcor's efforts to develop and obtain FDA approval of Synacthen™
Depot; Mallinckrodt's ability to receive procurement and production
quotas granted by the U.S. Drug Enforcement Administration;
Mallinckrodt's ability to obtain and/or timely transport molybdenum-99
to its technetium-99m generator production facilities; customer
concentration; cost-containment efforts of customers, purchasing groups,
third-party payors and governmental organizations; Mallinckrodt's
ability to successfully develop or commercialize new products;
competition; Mallinckrodt's ability to achieve anticipated benefits of
price increases; Mallinckrodt's ability to integrate acquisitions of
technology, products and businesses generally; product liability losses
and other litigation liability; the reimbursement practices of a small
number of large public or private issuers; complex reporting and payment
obligations under healthcare rebate programs; changes in laws and
regulations; conducting business internationally; foreign exchange
rates; material health, safety and environmental liabilities; litigation
and violations; information technology infrastructure; and restructuring
activities. Additional information regarding the factors that may cause
actual results to differ materially from these forward-looking
statements is available in (i) Mallinckrodt'sSEC filings, including its
Annual Report on Form 10-K for the fiscal year ended September 27, 2013,
its Quarterly Reports on Form 10-Q for the quarterly periods ended
December 27, 2013 and March 28, 2014; (ii) the SEC filings of Cadence
Pharmaceuticals, Inc., which was acquired by Mallinckrodt on March 19,
2014, including its Annual Report on Form 10-K for the fiscal year ended
December 31, 2013; and (iii) Questcor's SEC filings, including its
Annual Report on Form 10-K for the year ended December 31, 2013 (and the
amendment thereto on Form 10-K/A), its Quarterly Reports on Form 10-Q
for the quarterly periods ended March 31, 2014 and June 30, 2014, and
its Current Report on Form 8-K filed with the SEC on July 10, 2014. The
forward-looking statements made herein speak only as of the date hereof
and none of Mallinckrodt, Questcor or any of their respective affiliates
assumes any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events and
developments or otherwise, except as required by law.

Important Information for Investors and Shareholders

This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. In connection with the proposed transaction between
Mallinckrodt and Questcor, Mallinckrodt has filed with the Securities
and Exchange Commission (the "SEC") a registration statement on Form S-4
containing a joint proxy statement of Mallinckrodt and Questcor that
also constitutes a prospectus of Mallinckrodt. The registration
statement on Form S-4 (File No. 333-196054)was declared effective by the
SEC on July 11, 2014. Each of Mallinckrodt and Questcor mailed the joint
proxy statement/prospectus to its respective shareholders on or around
July 14, 2014. INVESTORS AND SECURITY HOLDERS OF MALLINCKRODT AND
QUESTCOR ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND
OTHER DOCUMENTS THAT HAVE BEEN OR WILL BE FILED WITH THE SEC CAREFULLY
AND IN THEIR ENTIRETY AS THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR
WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders can
obtain free copies of the joint proxy statement/prospectus, the
registration statement and other documents filed with the SEC by
Mallinckrodt and Questcor through the website maintained by the SEC at http://www.sec.gov.
Copies of the documents filed with the SEC by Mallinckrodt will be
available free of charge on Mallinckrodt’s internet website at www.mallinckrodt.com
or by contacting Mallinckrodt’s Investor Relations Department at (314)
654-6650. Copies of documents filed with the SEC by Questcor will be
available free of charge on Questcor’s internet website at www.questcor.com
or by contacting Questcor’s Investor Relations Department at (714)
497-4899.

MALLINCKRODT PLC

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME

(unaudited, in millions, except per share data)

Three Months Ended

June 27, 2014

Percent ofNet sales

June 28, 2013

Percent ofNet sales

Net sales

$

653.1

100.0

%

$

570.0

100.0

%

Cost of sales

368.8

56.5

304.2

53.4

Gross profit

284.3

43.5

265.8

46.6

Selling, general and administrative expenses

221.3

33.9

166.9

29.3

Research and development expenses

42.7

6.5

44.8

7.9

Separation costs

1.8

0.3

44.2

7.8

Restructuring charges, net

23.8

3.6

11.3

2.0

Gains on divestiture and license

(0.9

)

(0.1

)

(0.8

)

(0.1

)

Operating income

(4.4

)

(0.7

)

(0.6

)

(0.1

)

Interest expense

(22.7

)

(3.5

)

(9.4

)

(1.6

)

Interest income

0.3

—

—

—

Other expense, net

0.1

—

2.1

0.4

(Loss) income from continuing operations before income taxes

(26.7

)

(4.1

)

(7.9

)

(1.4

)

Provision for income taxes

(2.4

)

(0.4

)

19.8

3.5

Income from continuing operations

(24.3

)

(3.7

)

(27.7

)

(4.9

)

Loss from discontinued operations, net of income taxes

0.2

—

(0.2

)

—

Net income

$

(24.1

)

(3.7

)

$

(27.9

)

(4.9

)

Basic earnings per share:

Income from continuing operations

$

(0.42

)

$

(0.48

)

Loss from discontinued operations

—

—

Net income

(0.41

)

(0.48

)

Diluted earnings per share:

Income from continuing operations

$

(0.42

)

$

(0.48

)

Loss from discontinued operations

—

—

Net income

(0.41

)

(0.48

)

Weighted-average number of shares outstanding(1):

Basic

58.5

57.7

Diluted

58.5

57.7

(1) For periods prior to the separation from Covidien,
weighted-average number of shares reflects the number of ordinary
shares of Mallinckrodt outstanding immediately following the
separation.

MALLINCKRODT PLC

NON-GAAP MEASURES

(unaudited, in millions except per share data, net of tax)

Three Months Ended

June 27, 2014

June 28, 2013

Net income

Diluted

net income

per share (3)

Net income

Diluted

net income

per share (4)

GAAP

$

(24.1

)

$

(0.41

)

$

(27.9

)

$

(0.48

)

Adjustments:

Separation costs

1.8

0.03

44.2

0.77

Restructuring and related charges, net (1)

24.2

0.41

12.1

0.21

Amortization expense

51.6

0.87

8.9

0.15

(Gain) loss from discontinued operations

(0.2

)

—

0.2

—

Acquisition related expenses

16.6

0.28

—

—

Inventory step-up expense

9.5

0.16

—

—

Up-front and milestone payments

5.0

0.08

—

—

Significant legal charge

11.5

0.19

—

—

Income taxes (2)

(24.3

)

(0.41

)

(9.1

)

(0.16

)

As adjusted

$

71.6

$

1.20

$

28.4

$

0.49

(1) Includes pre-tax accelerated depreciation of $0.4
million and $0.8 million for the three months ended June 27, 2014
and June 28, 2013, respectively.

(2) Includes tax effect of above adjustments and
certain effects associated with acquisitions.

(3) For the three months ended June 27, 2014 the
weighted-average number of shares reflects 59.5 million shares as
compared to 58.5 million shares used in determining diluted
earnings per share prepared in accordance with GAAP. The above
non-GAAP measure includes 1.0 million shares that would be
antidilutive to GAAP diluted earnings per share.

(4) For periods prior to the separation from Covidien,
weighted-average number of shares reflects the number of ordinary
shares of Mallinckrodt outstanding immediately following the
separation.

Three Months Ended

June 27, 2014

June 28, 2013

Gross profit

Percent ofNet sales

Gross profit

Percent ofNet sales

GAAP

$

284.3

43.5

%

$

265.8

46.6

%

Adjustments:

Amortization expense

51.6

7.9

8.9

1.6

Inventory step-up expense

9.5

1.5

—

—

As adjusted

$

345.4

52.9

%

$

274.7

48.2

%

MALLINCKRODT PLC

SEGMENT NET SALES AND OPERATIONAL GROWTH

(unaudited, in millions)

Three Months Ended

June 27, 2014

June 28, 2013

Percent

change

Currency

impact

Operational

growth

Specialty Pharmaceuticals

Specialty Generics and API

$

329.4

$

253.7

29.8

%

(0.1

)%

29.9

%

Brands

84.9

54.9

54.6

—

54.6

414.3

308.6

34.3

(0.1

)

34.4

Global Medical Imaging

Contrast Media and Delivery Systems

116.7

138.9

(16.0

)

(0.8

)

(15.2

)

Nuclear Imaging

110.4

109.0

1.3

1.6

(0.3

)

227.1

247.9

(8.4

)

0.3

(8.7

)

Other(1)

11.7

13.5

(13.3

)

(6.0

)

(7.3

)

Net Sales

$

653.1

$

570.0

14.6

%

(0.1

)%

14.7

%

(1) Represents net sales to our former parent.

MALLINCKRODT PLC

SELECT PRODUCT LINE NET SALES

(unaudited, in millions)

Three Months Ended

June 27, 2014

June 28, 2013

Percent

change

Specialty Pharmaceuticals

Methylphenidate ER

$

54.7

$

17.4

214.4

%

Hydrocodone (API) and hydrocodone-containing tablets

25.3

36.2

(30.1

)

Oxycodone (API) and oxycodone-containing tablets

53.8

35.8

50.3

Other controlled substances

154.4

128.1

20.5

Other

41.2

36.2

13.8

Specialty Generics and API

329.4

253.7

29.8

EXALGO

8.6

34.2

(74.9

)

OFIRMEV

53.2

—

—

Other

23.1

20.7

11.6

Brands

84.9

54.9

54.6

Specialty Pharmaceuticals Total

$

414.3

$

308.6

34.3

%

Global Medical Imaging

Optiray

$

76.0

$

88.8

(14.4

)%

Other

40.7

50.1

(18.8

)

Contrast Media and Delivery Systems

116.7

138.9

(16.0

)

Nuclear Imaging

110.4

109.0

1.3

Global Medical Imaging Total

$

227.1

$

247.9

(8.4

)%

MALLINCKRODT PLC

SEGMENT OPERATING INCOME

(unaudited, in millions)

Three Months Ended

June 27, 2014

Percent of

segment

Net sales

June 28, 2013

Percent of

segment

Net sales

Specialty Pharmaceuticals

$

125.6

30.3

%

$

94.8

30.7

%

Global Medical Imaging

11.2

4.9

%

13.5

5.4

%

Segment operating income

136.8

21.3

%

108.3

19.5

%

Unallocated amounts:

Corporate and allocated expenses

(63.6

)

(43.7

)

Intangible asset amortization

(51.6

)

(8.9

)

Restructuring and related charges, net (1)

(24.2

)

(12.1

)

Separation costs

(1.8

)

(44.2

)

Total operating income

$

(4.4

)

$

(0.6

)

(1) Includes accelerated depreciation of $0.4 million
and $0.8 million for the three months ended June 27, 2014 and June
28, 2013, respectively.

MALLINCKRODT PLC

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME

(unaudited, in millions, except per share data)

Nine Months Ended

June 27, 2014

Percent of

Net sales

June 28, 2013

Percent of

Net sales

Net sales

$

1,751.1

100.0

%

$

1,659.3

100.0

%

Cost of sales

948.6

54.2

886.5

53.4

Gross profit

802.5

45.8

772.8

46.6

Selling, general and administrative expenses

561.6

32.1

474.4

28.6

Research and development expenses

123.1

7.0

122.4

7.4

Separation costs

6.6

0.4

70.6

4.3

Restructuring charges, net

53.5

3.1

17.9

1.1

Gains on divestiture and license

(14.7

)

(0.8

)

(2.2

)

(0.1

)

Operating income

72.4

4.1

89.7

5.4

Interest expense

(44.9

)

(2.6

)

(9.6

)

(0.6

)

Interest income

1.1

0.1

0.1

—

Other (expense) income, net

(0.9

)

(0.1

)

2.3

0.1

Income from continuing operations before income taxes

27.7

1.6

82.5

5.0

Provision for income taxes

(6.1

)

(0.3

)

55.9

3.4

Income from continuing operations

33.8

1.9

26.6

1.6

Loss from discontinued operations, net of income taxes

(0.7

)

—

(1.3

)

(0.1

)

Net income

$

33.1

1.9

$

25.3

1.5

Basic earnings per share:

Income from continuing operations

$

0.58

$

0.46

Loss from discontinued operations

(0.01

)

(0.02

)

Net income

0.57

0.44

Diluted earnings per share:

Income from continuing operations

$

0.57

$

0.46

Loss from discontinued operations

(0.01

)

(0.02

)

Net income

0.56

0.44

Weighted-average number of shares outstanding(1):

Basic

58.2

57.7

Diluted

59.0

57.7

(1) For periods prior to the separation from Covidien,
weighted-average number of shares reflects the number of ordinary
shares of Mallinckrodt outstanding immediately following the
separation.

MALLINCKRODT PLC

NON-GAAP MEASURES

(unaudited, in millions except per share data, net of tax)

Nine Months Ended

June 27, 2014

June 28, 2013

Net income

Diluted

net income

per share

Net income

Diluted

net income

per share (3)

GAAP

$

33.1

$

0.56

$

25.3

$

0.44

Adjustments:

Separation costs

6.6

0.11

70.6

1.22

Restructuring and related charges, net (1)

54.0

0.92

20.0

0.35

Amortization expense

75.9

1.29

26.6

0.46

Loss from discontinued operations

0.7

0.01

1.3

0.02

Acquisition related expenses

35.1

0.59

—

—

Inventory step-up expense

10.6

0.18

—

—

Up-front and milestone payments

5.0

0.08

—

—

Gain on intellectual property license

(11.7

)

(0.20

)

—

—

Significant environmental and legal charges

34.6

0.59

—

—

Income taxes (2)

(64.7

)

(1.10

)

(19.9

)

(0.34

)

As adjusted

$

179.2

$

3.04

$

123.9

$

2.15

(1) Includes pre-tax accelerated depreciation of $0.5
million and $2.1 million for the nine months ended June 27, 2014
and June 28, 2013, respectively.

(2) Includes tax effect of above adjustments and
certain effects associated with acquisitions.

(3) For periods prior to the separation from Covidien,
weighted-average number of shares reflects the number of ordinary
shares of Mallinckrodt outstanding immediately following the
separation.

Nine Months Ended

June 27, 2014

June 28, 2013

Gross profit

Percent ofNet sales

Gross profit

Percent ofNet sales

GAAP

$

802.5

45.8

%

$

772.8

46.6

%

Adjustments:

Amortization expense

75.9

4.3

26.6

1.6

Inventory step-up expense

10.6

0.6

—

—

As adjusted

$

889.0

50.8

%

$

799.4

48.2

%

MALLINCKRODT PLC

SEGMENT NET SALES AND OPERATIONAL GROWTH

(unaudited, in millions)

Nine Months Ended

June 27, 2014

June 28, 2013

Percent

change

Currency impact

Operational growth

Specialty Pharmaceuticals

Specialty Generics and API

$

848.5

$

763.9

11.1

%

(0.1

)%

11.2

%

Brands

199.6

149.3

33.7

—

33.7

1,048.1

913.2

14.8

(0.1

)

14.9

Global Medical Imaging

Contrast Media and Delivery Systems

340.9

378.5

(9.9

)

(1.8

)

(8.1

)

Nuclear Imaging

327.2

328.2

(0.3

)

0.9

(1.2

)

668.1

706.7

(5.5

)

(0.5

)

(5.0

)

Other(1)

34.9

39.4

(11.4

)

(6.5

)

(4.9

)

Net Sales

$

1,751.1

$

1,659.3

5.5

%

(0.5

)%

6.0

%

(1) Represents net sales to our former
parent.

MALLINCKRODT PLC

SELECT PRODUCT LINE NET SALES

(unaudited, in millions)

Nine Months Ended

June 27, 2014

June 28, 2013

Percent

change

Specialty Pharmaceuticals

Methylphenidate ER

$

154.3

$

88.3

74.7

%

Hydrocodone (API) and hydrocodone-containing tablets

75.1

105.2

(28.6

)

Oxycodone (API) and oxycodone-containing tablets

101.7

121.0

(16.0

)

Other controlled substances

408.6

342.3

19.4

Other

108.8

107.1

1.6

Specialty Generics and API

848.5

763.9

11.1

EXALGO

73.7

92.2

(20.1

)

OFIRMEV

58.5

—

—

Other

67.4

57.1

18.0

Brands

199.6

149.3

33.7

Specialty Pharmaceuticals Total

$

1,048.1

$

913.2

14.8

%

Global Medical Imaging

Optiray

$

219.4

$

243.3

(9.8

)%

Other

121.5

135.2

(10.1

)

Contrast Media and Delivery Systems

340.9

378.5

(9.9

)

Nuclear Imaging

327.2

328.2

(0.3

)

Global Medical Imaging Total

$

668.1

$

706.7

(5.5

)%

MALLINCKRODT PLC

SEGMENT OPERATING INCOME

(unaudited, in millions)

Nine Months Ended

June 27, 2014

Percent of

segment

Net sales

June 28, 2013

Percent of

segment

Net sales

Specialty Pharmaceuticals

$

344.5

32.9

%

$

234.8

25.7

%

Global Medical Imaging

25.9

3.9

%

81.5

11.5

%

Segment operating income

370.4

21.6

%

316.3

19.5

%

Unallocated amounts:

Corporate and allocated expenses

(161.5

)

(109.4

)

Intangible asset amortization

(75.9

)

(26.6

)

Restructuring and related charges, net (1)

(54.0

)

(20.0

)

Separation costs

(6.6

)

(70.6

)

Total operating income

$

72.4

$

89.7

(1) Includes accelerated depreciation of
$0.5 million and $2.1 million for the nine months ended June 27,
2014 and June 28, 2013, respectively.

MALLINCKRODT PLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

June 27, 2014

September 27, 2013

Assets

Current Assets:

Cash and cash equivalents

$

327.9

$

275.5

Accounts receivable, net

437.8

400.8

Inventories

398.3

403.1

Deferred income taxes

357.7

171.1

Prepaid expenses and other current assets

128.6

134.4

Total current assets

1,650.3

1,384.9

Property, plant and equipment, net

1,000.0

997.4

Goodwill

854.2

532.0

Intangible assets, net

1,663.4

422.1

Other assets

255.5

220.2

Total Assets

$

5,423.4

$

3,556.6

Liabilities and Shareholders' Equity

Current Liabilities:

Current maturities of long-term debt

$

14.4

$

1.5

Accounts payable

125.3

120.9

Accrued payroll and payroll-related costs

76.4

66.5

Accrued branded rebates

21.6

34.6

Accrued and other current liabilities

400.9

376.7

Total current liabilities

638.6

600.2

Long-term debt

2,201.3

918.3

Pension and postretirement benefits

97.7

108.0

Environmental liabilities

60.9

39.5

Deferred income taxes

772.6

310.1

Other income tax liabilities

123.7

153.1

Other liabilities

200.2

171.8

Total Liabilities

4,095.0

2,301.0

Shareholders' Equity:

Preferred shares

—

—

Ordinary shares

11.7

11.5

Ordinary shares held in treasury at cost

(1.9

)

—

Additional paid-in capital

1,141.5

1,102.1

Retained earnings

66.6

33.5

Accumulated other comprehensive income

110.5

108.5

Total Shareholders' Equity

1,328.4

1,255.6

Total Liabilities and Shareholders' Equity

$

5,423.4

$

3,556.6

MALLINCKRODT PLC

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

Nine Months Ended

June 27, 2014

June 28, 2013

Cash Flows From Operating Activities:

Net income

$

33.1

$

25.3

Loss from discontinued operations, net of income taxes

0.7

1.3

Income from continuing operations

33.8

26.6

Adjustments to reconcile net cash provided by operating activities:

Depreciation and amortization

158.7

102.2

Share-based compensation

14.4

11.4

Deferred income taxes

(20.5

)

7.5

Non-cash restructuring charge

2.6

—

Other non-cash items

17.3

(4.3

)

Changes in assets and liabilities, net of the effects of
acquisitions: